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Rhyolite Resources Ltd. ("Rhyolite" or the "Company") (TSXV:RYE) reports that updated assay data from a new infill sampling and quality assurance program has extended the mineralization in its most westerly and in its most easterly drill holes that tested the Shalosky gold zone on its wholly-owned Paxson gold property in eastern Alaska.

Shalosky 2012 Core Infill Program

Drill Hole

Section

Azimuth

Dip

From(m)

To(m)End of Hole**

Interval(m)

WeightedGrade(g/t Gold)

WG11-12

870

330

70

106.5

187.0**

80.5

1.5 (New)

Includes

106.5

176.6

70.1

1.6

Includes

143.2

157.9

14.7

3.1

WG11-02

940

350

65

87.6

138.7**

51.1

1.8 (New)

Includes

88.3

111.4

23.1

3.5

Includes

90.4

103.6

13.2

5.4

WG11-13

1435

190

45

176.3

223.1**

46.8

0.7 (New)

Includes

178.9

189.0

10.1

2.1

Weighted Grade is based on 0.10 gram gold per tonne cut-off with the inclusion of up to 10 per cent internal waste. All sub-intervals as reported on November 8, 2011 were confirmed by the Quality Assurance program. All intervals reported are downhole depth and core length, pending additional drilling and more accurate determination of true thickness.

The results from the infill sampling suggest that the mineralization in the host schist may have stratigraphic controls as well as structural controls, in that the mineralization is now seen to continue beyond the limit of primary structures to the full limit of drilling in core holes WG11-02; WG11-12; and WG11-13. A complete summary of the remaining 2011 drilled intervals on the Shalosky zone incorporating the new quality assurance data reported above can be found at the end of this news release.

Surface sampling in 2012 identified a volcanic massive sulphide area located 6 km northeast of the Shalosky gold zone. This occurrence dubbed HD-North is exposed in outcrop and appears to be 2 metres thick striking N30E and dipping 45 degrees to the southeast. Sample 3629 is a 2 metre by 2 metre panel chip sample collected from the 2 metre by 4 metre outcrop area. Sample 3630 is a grab sample with subtle chalcopyrite banding and sample 3631 is a grab sample with prominent galena/sphalerite banding each collected from the same outcrop.

Base & Precious Metal assays from 2012 Outcrop Sampling

Sample #

Zinc(%)

Lead(%)

Copper(%)

Silver(g/t)

Gold(g/t)

3629

5.68

2.80

0.48

65.6

0.53

3630

4.73

0.60

0.42

23.6

0.35

3631

8.46

5.93

0.32

111.0

0.50

The Paxson property comprises 135 mineral claims for a total of 8,670 hectares (86.7 square kilometers). Rhyolite is currently seeking a partner to help advance the Paxson property.

All intervals reported are downhole depth and core length, pending additional drilling and more accurate determination of true thickness. **(( )) represents original values reported on November 8, 2012.

The 2011 diamond drill results from the Hi-Low showing were not impacted by the infill or Quality Assurance program and remain as reported on August 29, 2011 and November 8, 2011.

2011 Hi-Low Target Drill Results

Drill Hole

From(m)

To(m)

Interval(m)*

WeightedGrade(g/t Gold)

WG11-05

19.5

21.9

2.4

3.2

And

26.9

54.3

27.4

1.9

Includes

38.7

52.3

13.6

3.4

Includes

40.2

43.0

2.8

14.2

WG11-06

31.7

37.2

5.5

4.0

Includes

35.0

37.2

2.2

8.6

*Downhole Widths - there has been insufficient drilling to determine true widths.

Quality control/Quality assurance

In 2012, the infill samples were collected from intervals in the BTW-size drill core that were sawn longitudinally and half the drill core was sampled in standard intervals not exceeding 2.0 metres in length. Core samples were transported in security-sealed bags to the lab for analyses. All samples collected in 2012 were sent for gold fire assay and 48-element ICP analysis to ALS Chemex Labs. Samples were prepared in ALS Chemex's Fairbanks prep facility and then sent to Reno Nevada for analysis. Gold fire assays were on 30 gram pulp splits with an AA finish. One in every ten samples contains a control (blank or gold standard).

A total of 407 core samples from the 2011 diamond drill program were submitted for re-assay at no cost to Rhyolite because the control samples that were associated with select assay batches returned statistical variations. Within that group of 407 samples, 62 samples were ultimately determined to contain gold mineralization of 0.5 gram gold per tonne or more. Of these, 1/3 of the samples increased by more than 5% above the original assay; and for another 1/3 the final accepted value was more than 5% lower than originally reported; and for the remaining 1/3 there was less than a 5% change. However, in the group whose original values were too low, the average increase was +48% compared to a -16% average for the group that went down.

Qualified Persons

The foregoing disclosure has been reviewed, compiled and is the responsibility of Richard A. Graham, P. Geol., President of Rhyolite and a "qualified person" for the purpose of NI 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS OF
RHYOLITE RESOURCES LTD.

"Richard Graham"
President and CEO

For further information please contact:

Richard Graham, P.Geol.
Telephone: 604-488-8717

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement

Some statements in this report contain forward-looking information. These statements include, but are not limited to, statements with respect to future exploration, expenditures, transactions and financings. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others, risks related to actual results of exploration activities, the timing and amount of expenditures and the completion of transactions and financings.